CONSULTEASE.COM

Sign In

Profile photo of Zara taggingZara tagging asked 3 years ago

Mobile recharge

We are providing mobile recharging service, is it taxable in GST?

Answer the question
2 Answers
Profile photo of Neeraj Kumar RohilaNeeraj Kumar Rohila answered 3 years ago

Yes, it is taxable under GST. But you should calculate the GST on the Amount of recharge which is inclusive of the GST tax amount. 
For Example,
You recharge of the RS.50, Then the amount shall be calculated as follows:
= Recharge Amount * Tax rate/[100+Tax Rate]
= 50 * 18/118 = Rs.7.627
CGST = RS. 3.813 and SGST = RS. 3.813

Profile photo of Neeraj Kumar RohilaNeeraj Kumar Rohila answered 3 years ago

Yes, it is taxable under GST. But you should calculate the GST on the Amount of recharge which is inclusive of the GST tax amount. 
For Example,
You recharge of the RS.50, Then the amount shall be calculated as follows:
= Recharge Amount * Tax rate/[100+Tax Rate]
= 50 * 18/118 = Rs.7.627
CGST = RS. 3.813 and SGST = RS. 3.813